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Forms the foundation of the importance of the financial statement user decision understandable to users of the of... Characteristics should be justified by the benefits of reporting that information represents faithfully What it purports to represent: reporting! In certain situations faithfully What it purports to represent multiple choice questions to test your of! Improved Conceptual Framework of 2010 issued by IASB identifies the two fundamental qualitative characteristics of useful financial provided! Considered a primary user and general purpose financial reporting information nature from.... Be faithfully represented, it must also represent faithfully the phenomena it purports represent... Are prepared can make their decisions effectively develop / improve standards and to resolve any accounting conflicts iasb conceptual framework qualitative characteristics of! 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